RE:RE:RE:RE:RE:RE:RE:i will leave this right hereMoneyK wrote: 10M tons at $50 gross margin x12.5 could... one day... get us close to $76... LOL... ... but, I'll gladly take 25%-30% of that in 2022! MoneyK
Yes, this asset has great potential. However, to get to a valuation based upon an average of 10 million tonnes of production would take years. Unless a purchaser is exceptionally motivated, they are not going to shell out $ for an unproven ability for a valuation based upon 10 million tonnnes per annum. Hell, even if an operating mine for sale had averaged 5-6 million tonnnes per annum and a sale price was based on increasing to 10 million, there would likely be an earnout provision based upon the vendors ability to hit the new, unproven target. That's just how this stuff works. Only a highly motivated purchaser will pay top dollar for an asset. Do we have one in this case? Not sure but we will not know until after the FS is in the market for a little while.
For example. Compass Minerals is rumoured to be shopping its UK ops now since July 2002. Is this so that they can get away from salt and pay down some extra debt to focus on lithium? Or are they getting rid of the UK ops to focus on North America and take a run at Atlas in the near term? Who knows.